Sold 40% of my UNG position during today's giant 7% gain, as Natural Gas storage numbers according to the EIA came in less than analyst expectations. eia Output, rig count, and drilling down nearly ~50% yoy according to a cnbc report...is this 40 cent move attributed to short covering? Of course, so tomorrow through next week will be vital to see whether these levels can be held...I initiated this position on June 16th at a price of $15.87 and have averaged down the falling knife ever since.. I must look back to my investment thesis of a possible abc bottoming pattern on heavy volume and the fundamental aspect that nat gas was at its highest spread in relation to crude oil since the early 1990's.
UNG 1 year, note the spike in volume in mid June UNG
Where to from here? Maybe a run to the 50dma, i will not be greedy, i will continue to average out and raise my stops as I do not foresee a forthcoming improvement in nat gas fundamentals...once again i am too early to the party
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